Shocked that companies and mutual funds would invest OPM (Other People's Money) in high-risk investments, the Shocked Investor was originally on a mission to find out if our money ended up in these dubious instruments. This blog now also discusses other financial topics, such as straddles, options, gold, natural gas, agri/food stocks, and the collapse of the US Dollar.

Listen on Podcast

Google Friends

Friday, November 12, 2010

Nassim Taleb, distinguised professor at NYU and author of The Black Swan, was on Bloomberg TV today blasting Bernanke for not understanding the risks he is taking by doing QE2.

He says QE2 is like being short on an out of money option on hyperinflation, meaning, you are in very deep trouble if it happens.

Who will bear this risk? Retirees.

The Feds' business seems to be "price instability".

Watch interview:

This is his latest book. The title is a reference to Procrustes, a Greek who given a bed for his guests, would cut the guests's legs if they were too big, or stretch them if they were too short, an allusion to what the Fed is doing, as opposed to fixing what is really wrong: